TIDMKOD
RNS Number : 3322D
Kodal Minerals PLC
26 April 2017
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR")
Kodal Minerals Plc / Index: AIM / Epic: KOD / Sector: Mining
26 April 2017
Kodal Minerals plc ('Kodal Minerals' or 'the Company')
High-Grade Lithium Mineralisation at Bougouni Project Confirmed
by Assay Results
Kodal Minerals plc, the mineral exploration and development
company focussed on West Africa, is pleased to announce that
initial assay results have been returned from the exploration
drilling programme currently underway at the Company's Bougouni
Lithium Project in Southern Mali ("Bougouni" or the "Project"). The
initial results are from the first-pass drilling at new prospects
"Sogola-Baoule" and "Boumou" and confirm high-grade lithium
mineralisation within the pegmatite intersections.
Kodal Minerals is also pleased to advise that the potential
further investment into the Company of up to GBP4.3 million by Suay
Chin International Pte Ltd ("Suay Chin"), details of which were
announced on 10 March 2017, is progressing well. Suay Chin has
informed the Company that it has satisfactorily completed its due
diligence procedures and the parties are now negotiating the final
terms of the investment agreements. Completion of the investment is
subject, inter alia, to finalisation of the definitive agreements
and further updates will be provided as soon as possible.
Highlights
-- Initial assay results have confirmed lithium mineralisation at two new prospects.
-- Sogola-Baoule prospect: results received for four of the five
drill holes with significant mineralisation including:
o 9m at 1.84% Li(2) O from 186m;
o 11m at 1.65% Li(2) O from 131m; and
o 8m at 1.53%Li(2) O from 117m.
-- Boumou prospect: results received for one of the six drill
holes with significant mineralisation including:
o 10m at 1.61% Li(2) O from 50m; and
o 6m at 1.45% Li(2) O from 106m.
-- Infill and extension drilling nearing completion at the
Ngouanala prospect to target extensions to the high-grade lithium
mineralisation following intersections of up to 1.85% Li(2) O in
first phase drilling.
-- The Company is extending the drill programme and will move
back to the Sogola-Baoule prospect to begin immediate follow-up of
the initial results reported above.
Bernard Aylward, CEO of Kodal Minerals, said: "These initial
drilling results from the Boumou and Sogola-Baoule prospects are
very exciting as they demonstrate the potential to define
additional zones of high grade mineralisation which will complement
the excellent grades and width of mineralisation previously
intersected at the Ngoualana prospect. We are now starting to
identify the key areas for follow-up and definition drilling that
will underpin the future development of the Bougouni Lithium
project. We are expecting to continue drilling for an extended
period.
"Meanwhile, the current phase of drilling at the Ngouanala
prospect is nearing completion with significant strike extensions
confirmed and depth potential highlighted. Samples have been
dispatched to the laboratory at regular intervals. As previously
stated, the drilling at Ngouanala was planned to provide sufficient
data to confirm mineralisation and define strike and depth
extensions as well as highlight areas of high-grade mineralisation
for future drill definition.
"Finally, we are progressing the investment agreement with our
new strategic investor and off-take partner, Suay Chin, which could
result in Suay Chin increasing its holding in the Company to 20%.
The completion of the second stage placement will provide the
Company with sufficient finance to expand the exploration and
definition work at Bougouni and rapidly advance the Project."
Further Information
Bougouni Lithium Project - Initial drilling results Drilling
Update
Drilling results have been received for the Sogola-Baoule
prospect, with four of the five drill holes returned, and for the
Boumou prospect with one of the six drill holes returned.
Intersections are tabled below, with intersections calculated using
a 1% Li(2) O lower cut-off, maximum 2m internal dilution and only
reporting intersections of greater than 5m width.
A summary of the drilling completed and intersections received
is:
-- Sogola-Boule: Five drill holes for 864 metres completed with
pegmatite intersections up to 25 metres. The significant lithium
mineralisation is clearly associated with zones of spodumene rich
pegmatite intercalated with metasediment zones. The drilling is
returning multiple pegmatite veins, and preliminary review is
indicating continuity along strike of good width and grade
pegmatites. The prospect remains open along strike and at depth,
and follow-up drilling is due to commence immediately.
-- Boumou: Six drill holes for 842 metres completed with
pegmatite intersections up to 28 metres. Drilling has indicated
that the Boumou area is heavily weathered, with depth of weathering
exceeding 50m. The geological logging is able to clearly identify
the rock units, however the weathering process may impact on the
grade of lithium returned as the minerals are destroyed and
elements released. The significant intersections in drill hole
KLRC013 demonstrate good width and grade of lithium mineralisation,
as well as multiple other pegmatite veins within the drill hole.
The prospect remains open along strike and at depth, and geological
mapping of the area continues to reveal further zones of
significant pegmatite intrusion that will require first-pass drill
testing. The Boumou prospect is defined over a significant area,
and the amount of pegmatite veins is an indication of the high
prospectivity of this area.
Initial intersections returned for the drilling at the Boumou
and Sogola-Baoule prospects are tabled below:
Hole
Hole Depth From To Thickness Li(2)
Prospect Id Northing Easting M m m m O %
---------- --------- --------- -------- ------- ------- ------- ---------- ------
Boumou KLRC013 655325.7 1255643 140 50.00 60.00 10.00 1.61
67.00 72.00 5.00 1.13
79.00 84.00 5.00 1.03
106.00 112.00 6.00 1.45
-------------------- --------- -------- ------- ------- ------- ---------- ------
Baoule MDRC007 652754.2 1253264 186.00 56.00 62.00 6.00 1.39
98.00 108.00 10.00 1.39
156.00 165.00 9.00 1.84
-------------------- --------- -------- ------- ------- ------- ---------- ------
Baoule MDRC008 652777 1253261 168.00 70.00 79.00 9.00 1.47
131.00 142.00 11.00 1.65
-------------------- --------- -------- ------- ------- ------- ---------- ------
Baoule MDRC009 652806.2 1253270 168.00 28.00 39.00 11.00 1.13
66.00 72.00 6.00 1.25
117.00 125.00 8.00 1.53
-------------------- --------- -------- ------- ------- ------- ---------- ------
Notes: Drill holes are reverse circulation drill holes completed
by specialist contractor Geodrill Limited. Drill holes have been
sampled on a 1m basis, with samples collected via a cyclone and
riffle splitter. Drill hole collars are surveyed using a hand-held
GPS with sub1-metre accuracy, coordinate system WGS84 - Zone 29N,
and all holes are survey down-hole for dip and azimuth on
approximately 30m intervals. All drill holes are geologically
logged, and sampling for analysis in based on geological
boundaries. 1m samples of pegmatite rock have been collected via
riffle splitter, and 3 metre composite samples of metasediment host
rock. Samples analysed by ALS Global. Assay results are reported as
Li% and converted to Li(2) O% by a factor of 2.153. Intersections
are reported using a 1%Li(2) O lower-cut-off, and allowing for a
maximum of 2m internal dilution.
A total of 399 samples have been received to date with an assay
range varying from a minimum of below detection limit (0.005% Li)
to a maximum result of 2.25% Li(2) O. Samples are reported as Li%
and converted to Li(2) O% by multiplication of a factor of
2.153.
Samples were analysed by ALS Laboratories, with sample receipt
and preparation at ALS Bamako Mali with final analysis completed at
ALS Vancouver, Canada. Samples analysis was completed with a four
acid digest and final detection by ICP-AES method.
Lithium
The pegmatite veins intersected by drilling at Bougouni are
spodumene rich (20-30% spodumene content) low mica pegmatite bodies
with spodumene being the main lithium bearing mineral in most hard
rock lithium deposits. The high-grade lithium mineralisation
returned in the assays compares favourably with other hard rock
spodumene mineralised pegmatite veins under development around the
world where grades range from 1.1% Li(2) O through to 1.4% Li(2) O.
The intersections reported in this announcement have been estimated
using a 1.0% Li(2) O lower-cut, and have consistently high
mineralisation throughout the pegmatite bodies.
An initial review of the development process for the Bougouni
lithium pegmatite bodies was completed as part of the World Bank
sponsored SYSMIN study completed by CSA Global in 2008. This report
indicated that a process of mine site crushing, screening and dense
media separation techniques was able to produce a good quality
spodumene concentrate, with grade over 6% Li(2) O. Chemical grade
spodumene concentrate (typically containing 6% Li(2) O) is sold for
use in battery manufacturing and other industrial applications.
Recent lithium concentrate (grade 6%) prices are approximately
US$600/t.
The exploration results and activity reported in this
announcement have been reviewed by Mr Bernard Aylward who is a
Member of the Australasian Institute of Mining and Metallurgy. Mr
Aylward has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity being undertaken to qualify as a Qualified Person as
defined in the AIM Note for Mining and Oil & Gas Companies
dated June 2009. Mr Aylward consents to the inclusion in this
announcement of the matters based on his information in the form
and context in which it appears.
**ENDS**
For further information, please visit www.kodalminerals.com or
contact the following:
Kodal Minerals plc
Bernard Aylward, CEO Tel: +61 418
943 345
Allenby Capital Limited, Nominated
Adviser Tel: 020 3328
Jeremy Porter/Nick Harriss 5656
SP Angel Corporate Finance LLP,
Financial Adviser & Broker Tel: 020 3470
John Mackay/Laura Harrison 0470
St Brides Partners Ltd, Financial
PR Tel: 020 7236
Susie Geliher/Megan Dennison 1177
This information is provided by RNS
The company news service from the London Stock Exchange
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